software resu
ccmpsny .
It had
computer you
one computer . "
Center (PARC)
deve lopment .
Chapter 10 Apple Computer in the 1980's
1980, Apple Computer had distinct characteristics,
had developed in the Apple II and the related (
it to make the transition from hobbyist or techn:
innovations and the release of VisiCalc spreads]
visit to the Xerox Palo Alto Research
1979 changed the course of product
The new PARC human interface concepts
suited the vision of Apple. It continued the innovative
initiatives of Wozniak. The development of the Lisa
computer and the Macintosh computer that would be the
future of Apple in the 1930's.
10.1 ... Corporate & Other Activities
Public Stock Offering
The initial founders Jobs, Wozniak, Markkula, Holt
and the venture capitalists who provided the financing
had a tight control of the Apple Computer shares.
Markkula also kept a firm control on the later sale and
award of Apple shares. Initial shares went through
several splits that significantly increased their value.
A share distributed before April 1979 was the equivalent
of t j".i rty-tw-:- shares on the day that Apple went public.
During 1980 the market for new stock issues had
improved. In August 1980 the Apple Computer board of
directors decided to make a public offering of shares in
the company. Apple selected two firms who offered 4.6
million shares of common stock for sale in December
1980. It was a huge success and oversubscribed. On the
first day the offered share price of 522 increased to
529. At the end of December 1980 Jobs' ownership in the
10/2 Part III 1980's -- The IBM /Macintosh era
company was worth about $256 million, Markkula's $239
million, Wozniak's $136 million and Holt's $67 million.
1980/82 Activities
The company introduced Apple FORTRAN in January
1980, then they announced the Apple III computer in May
(see Section 10.2). In August at a company board meeting
the board members decided to implement a new company
functional one to a product-oriented one. The company
created Divisions for the Apple II and Apple III, Lisa,
In February 1981 Wozniak crashed his airplane on
take-off from a local airport. Wozniak had serious
injuries and for a period of time suffered from amnesia
and lapses of conscious-ess. By early 1b81 the employee
count had grown rapidly to nearly 2,000. An adjustment
required just over 40 employees being terminated in
February. The Terminations, and the way Mirie Scott
handled them, had a bad effect on employee morale.
Employees described the layoff as "Black Wednesday." A
number of activities were converging to undermine the
effectiveness of Apple's president Mike Scott. He was
experiencing potentially serious health problems with an
eye infection. Also he had not impressed management with
the poorly handled layoffs. After an executive meeting
in March, Markkula requested Scott's resignation and
assumed the presidency of the company.
With release of the IBM PC computer in August
1981, Apple made an interesting competitive response.
Adve _t isement s in a number of national newspaper
published an open letter to IBM. It stated "Welcome,
IBM. Seriously. Welcome to the most exciting and
important marketplace . . ." Jobs received a personal
reply from John Opel, the president of IBM thanking him
Jobs appeared on the cover of Time magazine in
February 1982 with the caption "Striking it Rich —
America's Risk Takers." Lire magazine also featured him
a month later. Jobs appeared again in the January 1983
Apple Computer in the 19B0's 10/3
computer as the "Machine of the Year." The article was
not complimentary of Jobs, but he was becoming a
national personality.
In May 1982, Apple sued Franklin Computer
Corporation for patent and copyright infringement.
Wozniak, who had been playing a less significant role
within the company, decided to return to college and
complete his bachelor's degree. Wozniak also arranged
and financed a "US Festival" of rock music in September
and a second one in 1983. It was during 1982 that Apple,
at Jobs' initiative, began the process of giving Apple
computers to academic institutions and prisons. In
November 19 82 Apple held its first Apple Fes t in San
Francisco, California. Then in December, Apple became
the first personal computer company to reach a rate of
one billion dollars in annual sales.
The company started a project in 1982 called the
Apple IIx using an early version of the Western Design
Center 55815 microprocessor. The engineering manager was
Dan Hillman with some assistance from Wozniak in 1983.
However availability and reliability problems with the
other Apple products resulted in the project
John Smlhy
Appl
e star
■ted con
sidering
Candida
tes
for
t-e
presidency
in 1981
2. Markku
la had al
ready
St
:ated
that
his
role as prs
:sident
was temp
orary, an
be
lard
would
not
support Jobs' de
sire for the poi
iitior
The
personal
computer m
arket h
ad chang
ed after
IBM's
e
ntry
in 1!
-S_ .
IBM was gaining
market e
hare and
t-e
ot
her
compai
lies
engaged in
severe
price-c
utting to
mair
ta
in s
ales.
T-e
need for .
a new
president
: at Appl
e wa
ning i
aore
impo rtant .
Apple
engaged
an executive
search
firm
w-.o
approached
severa:
L Candida
tes, incl
uding
Dc
n Es
tridge of
IBM. However aft
er an a
^tractive
offe
r
from
Jobs
-e
decided to
stay w:
Lth IBM.
Late in t
he ye
they
■ made
t-e
initial coi
it acts
tfith Johi
l C. Sculley, the
pre
sident
: of
Pepsi-Cola
USA, a
subsidia
ry of Pe p :
;iCo.
10/4 Part III 1980 : s -- The IBM M.i, uito.l) e
1 ; :? w^jHteSi
Figurf
tograph is
: John C. Sculley.
sy of Apple Computer, Inc
John Sculley had a bachelor's degree from Brown
University and an MBA from the University of
Pennsylvania Wharton School. Sculley joined Pepsi-Cola
in 1967 and became president of the company in 1977.
Markkula offered Sculley $1 million to join Apple, $1
million in annual pay and options for 350,000 shares of
Apple stock in the spring of 1983. In addition he
and SI million in severance if he did not work out.
Within a few months the stock options would be worth
over 9 million dollars. Jobs had made a pointed comment
to Sculley when he said "Do you want to spend the rest
of your life selling sugared water, or do you want a
chance to change the world?" Sculley accepted the offer
Apple Computer in the 1980's
Oilier Activities between 19S3 and 19S9
The company announced the Apple lie and Lisa
computers in January 1983 (see Sections 10.3 and 10.4
respectively). The publicity described the computers as
"evolution and revolution." Bill Atkinson and Rich Page
became Apple Fellows in February. Then Apple Computer
entered The Fortur.e "'.agazine top 500 companies at jvumoa:/
411 in May and built the one millionth Apple II in June.
It was the first computer awarded in a program called
"Kids Can't Kait," That provided computers to about
9,000 schools in California. Apple introduced the ProDOS
operating system in June and an integrated software
package oalleo Apple 1 /?:' _" !::;: i- Novembe i" . The company then
introduced the Apple III Plus computer and the
ImageWriter dot-matrix printer in December. Apple sales
had surpassed one billion dollars annual rate by
December. However competition from companies such as IBM
had reduced profits. An industry wide recession had
started that resulted in significant staff reductions.
Sculley then decided to reorganize the company into two
operational groups; the Apple II and Apple 32 that
integrated the Lisa and Maci-tosr. product lines.
The company announced the Lisa 2 (see Section
10.4) and the Macintosh (see Section 10.5) computers in
January 1984 . The company also released the ProDOS
operating system f ■: i' Apoie II coraoutr i" s a:\o is ached a:\
out-of-court settlement of their patent infringement
suit with Franklin Computer Corporation in January. Then
Apple introduced the Apple lie computer (see Section
10.3) and discontinued development of the Apple III
product line in April. Alan Kay who had been a principal
at Xerox PARC and chief scientist at Atari, became an
Apple Fellow in May. Apple introduced the DuoDisk for
the Apple II computer in June for $795, that was
essentially two 5.25-inch Disk II drives in a single
Apple Writer 2 . was released in September. During the
year the company investigated strategic alliances with
companies such as AT&T, General Electric, General Motors
10/« Part III 1980's -- The IBM /Macintosh era
to increase company penetration in the office systems
market. Sales boomed until September, and by November
Apple had sold two millicn .Apple II compute r s . Howeveu
during the last three months of 19B4 an industry wide
recession lowered Apple II, Lisa and Macintosh sales
significantly below marketing forecasts.
In 1984, Andy Hertzfeld who had worked on the
development of software for the Macintosh computer, left
Apple Computer and cieve lopec. a program called Swiccher.
The program was developed to compete with integrated
applications that could be running simultaneously.
Hertzfeld sold the program to Apple Computer who
supplied it free with the Macintosh computer.
Apple introduced the Macintosh Office software and
56,999 in January 1985. The printer used a Motorola
MC68020 microprocessor and the Adobe PostScript page
description language (PDL) . The Macintosh Office
featured the AppleTalk Personal Network software that
allowed a group of Macintosh computers to communicate
and be connected to a LaserWriter printer. Unfortunately
some key elements of the Macintosh Office software such
as the File Server for sharing information were not
ready. Wozniak left Apple in February and started a new
company called CL-9 (Cloud-Nine) to develop remote
control products for the home . Apple enhanced the Apple
lie computers in March and terminate-:; production of the
Lisa computer in April. Different versions of a 3.5-inch
UniDisk drive with a capacity of 800K bytes were
released in 1985 for the Apple II computers.
As sales deteriorated, the relationship between
Jobs and Sculley also deteriorated. In the spring of
1985 they contested in a somewhat acrimonious manner for
the leadership of the company. This executive
Sculley as CEO of the company to make organizational
changes. After securing the support of the board members
in April, he persuaded them to relieve Jobs of any
operational role in the company. In May the product
Apple Computer in the 1980's 10/7
and Sculley adjusted in 1983, changed back to a
functional one. Personnel changes included: Del Yocam,
Jean-Louise Gassee, would be in charge of product
development; Deborah A. Coleman, world-wide
manufacturing; and Michael H. Spindler, all
three manufacturing plants and laid off 1,200 employees.
Finally Apple declared its first quarterly loss.
Another problem f-:-r Asple Computet: was a Lack ■:■ f
application software for the Macintosh computer. This
resulted in a campaign to encourage software companies
to develop application programs for the Macintosh. Guy
Kawasaki who had joined Apple in 1983 and Mike Eoich
became "software evangelists," that promoted the new
campaign. A significant application program for the
Macintosh, would be the desktop publishing program
called PageMaker .
Jobs resigned in September and started a new
company called NeXT Computer, Inc. However when five key
personnel joined NeXT, Apple started litigation to stop
Jobs and NeXT Computer from using any of its proprietary
technology.
Work was started in 1984 to develop an online
worldwide network to support the company's dealers. This
evolved into a Macintosh system called AppleLink that
went online in July 1985. The system was maintained and
operated as a joint effort between Apple Computer and
General Electric. It featured easy-to-use graphics,
LaserWriter Plus in January 1986. Sculley became
chairman of the company and Apple reached an out-of-
court settlement in the litigation with Steve Jobs in
January. By February, Jobs had sold his holdings of
Markkula now became the largest shareholder. Wozniak
graduated from the University of California at Berkeley
in June. The company announced the Apple IIGS computer
and the enhanced Apple lie in September (see Section
10.3) .
10/8 Part III 1980's -- The IBM /Macintosh era
Apple introduced the Macintosh SE and Macintosh II
(see Section 10.5) in March 1987. Then in April, the
company decided ;i ctest? an ir.dep^Vjde:". t v,\".olly cvnecl
subsidiary called the Claris Corporation, to take over
sales Fi-d marketing of Apple application software. Apple
also introduced the MultiFinder operating system
software and the HyperCard software for the Macintosh
computer at the Macworld trade show in Boston in August.
After helping to create the latest versions of the
Macintosh computer, Steve Sakoman became head of a new
research project in 1987 . Sakoman wanted to create a
radically different personal information device he named
Newton. It would be oen-oaseo , u = e hanclwi" it i-g
prototype slatelike device had been developed that
measured 8.5 by 11 inches. However, the estimated cost
had grown from an early target of 52, 500 to between
56, 000 and 58, 000 and Sakoman was having problems with
corporate support.
Bill Atkinson developed the HyperCard system
software and the HyperTalk programming language in
August 1987. This personal software toolkit provided a
capability to organize a body of information and then
could be text, graphics, video, animation or sound.
In March 1988, Apple started litigation against
Microsoft. Apple claimed for infringement of the
Macintosh graphics in a new release of MS Windows
Version 2.0 3 software. The suit also named Hewlett-
Packard and it's NewWave software in the litigation.
Apple introduced the Apple lie Plus and the Macintosh
IIx (see Section 10.5) computers in September. The
Macintosh IIx was the first Apple computer to use the
Motorola MC68030 microprocessor and 68882 math
coprocessor. Claris released AppleWorks GS for the Apple
IIGS computer in October.
In July 1989 a judgment in the litigation with
Microsoft, significantly reduced Apple Computer's
claims . Apple announced the Macintosh Portable and the
Macintosh Ilci in September 1989 (see Section 10.5). The
Macintosh Ilci was a high performance version of the
Macintosh Ilex. In 1989 Xerox filed a lawsuit against
Apple Computer in the 1980's 10/9
Apple, stating it had infringed on the PARC copyrights .
1990 .
Following the company reorganization in 1985 and
the introduction of Macintosh products with more memory
and hard disk storage, the fiscal condition at Apple
started to improve. Although corporate management
problems continued. Areas such as executive direction
and software development oould have been improve-:;. A
tug-of-war between profit margin and an open or licensed
product architecture to increase the Macintosh market
reaching effects. These years were a turning point for
the company. The open architecture of the IBM Personal
Computer and all its clones, resulted in a massive
market support in both hardware and software development
that would be detrimental to Apple's future leadership
in the industry. However, sales and profits continued to
improve. In the 1989 annual report, the net sales were
5.3 billion dollars and the total number of employees
14,517. An impressive growth compared to 1979. John
Sculley as chairman, president and chief executive
officer had made significant achievements since his
arrival in 1983. However the past was history, as he
decade, we see a time of enormous opportunity for Apple
Computer . "
10.2 ... Apple III
_he Apple __I com;: .:te _" hex', a ::li f f ioult gestation
from its start in 1978 as the Sara project. A
requirement to be able to run Apple II software, limited
the microprocessor selection and created difficulties
with the design. Wendell Sander was the chief hardware
designer. Jobs was involved initially with the product
design and affected i~ r - oomplet ion ocheorule wi~h
numerous demands. Apple set a constricted target date
and problems developed around the time Jobs got
interested in the Lisa technology. Planning required
Apple III development within ten months. It was to be a
10/10 Paitm 1980's~ The IBM/Macintosh era
off in Apple II sales and the introduction of Lisa. The
company targeted the Apple III at the small business
owner and for professional-managerial users. Apple
announced the computer at the National Computer
Conference in Anaheim, California in May 1980 and
started shipping them in the fall of 1980.
Figure 10.2: Apple III computer.
Photograph is courtesy of Apple Computer, Inc.
The computer used a Synertek 6502A microprocessor
with 96K bytes of memory, expandable to 128K. The unit
included one built-in 5. 2 5- inch, 143K byte floppy-disk
drive and the terminal could display 2 4 lines of 8 0-
column text.
(Sophisticated Operating System! , built-in Apple
Business BASIC and Pascal programming languages . An
Apple Computer in the 1980's 10/11
Apple II emulation mode enabled some Apple II software
to run en The computer. Jeffrey S. Raikes was a
principal in the development of the Apple III software.
The company sold Apple III ccmpucers a:;: systems. A
computer system, with a bl a::\-:-ane.-white monitor, a- 3':-
column thermal dot-matrix printer and the VisiCalc III
spreadsheet program sold for 54,500.
The company released a 5 megabyte hard disk called
ProFile for use with the system in September 1981. The
incorporated had a detrimental effect on the quality of
the computer. A number of problems required a redesign
of the computer then re-introduction in December. Apple
allowed early customers to exchange their old computer
for a new one . The company introduced the Apple III Plus
with 25eK bytes cf memory, other improvement =j a^\6. a
price of 52, 995 in December 1983 . However after the
introduction of the Macintosh and Lisa 2, the company
discontinued the product line in April 1984. The initial
poor quality resulted in only sixty-five thousand Apple
Ill's being sold in the three years after its
introduction. The resources committed to the release and
problems with the Apple III during 1980/81, inhibited
enhancements to the Apple II product line.
10.3... Apple IPs
Apple lie
During 1981 the Apple II computer group started
working on an upgrade that became the Apple lie. The "e"
represented enhanced. Apple intended this upgrade to
extend the life of the Apple II. Peter Quinn was the
chief engineer and Walt Broedner a principal in the
development of the new design. Apple retained the
enclosure style of the Apple II computer but completely
redesigned the interior. The new design significantly
reduced the number of integrated circuit chips. Two
custom MOS chips and 64K bit memory chips contributed to
this reduction. The company announced the Apple lie with
the Lisa computer in January 1983.
10/12 Paitm 1980's~ The IBM/Macintosh era
The computer used a MOS 65 02A microprocessor with
64K bytes of RAM, expandable to 128K. The storage system
supported six 140K byte 5.25-inch floppy disk drives and
the terminal could display 24 lines of 40-column text in
both uppercase and lowercase characters. The unit had a
new 63-key keyboard adapted from the Apple III computer.
The programs in the 1 6K of ROM were the Applesoft
BASIC interpreter, system monitor routine, BO-column
display firmware and self-test routines. The company
also released the Apple Writer lie word processor and
QuickFile lie data base application programs. The
majority of Apple II and Apple II Plus programs and
peripheral cards were compatible with the Apple lie.
The base list price for a standard unit was
51,395. A typical system with a single Apple Disk II
drive and controller, 64K bytes of RAM, BO-column text
card, and a monochrome monitor had a price of 51,995. An
Apple Disk II drive and controller had a cost of 5545.
The 80-column text card cost 5125 and the extended
memory 8 0-column card that included an additional 64K
bytes of memory cost 5295.
Apple enhanced the Apple lie computers with four
new high-performance chips in March 1985. The new chips
monitor ROM chips and the 6502 with a 65C02
additional update of the Apple lie occurred in January
1987, that incorporated the Apple IIGS keyboard and
Apple lie
Apple introduced the Apple lie at an "Apple II
Forever" conference in San Francisco, California in
April 1984. The "c" stood for compact . Peter Quinn who
was the chief engineer for the Apple lie, was also
engineering manager of the lie design team. It was a
portable computer that would be in competition with the
IBM PCjr. The computer used additional custom integrated
Apple Computer iu the 1980"s 10/13
number of chips on the motherboard. Dimensions of the
computer were 12 by 11.5 by 2.25 inches and the weight
was 7.5 pounds. A German design company styled the
bytes of RAM . The unit had one built-in half-height
5. 2 5- inch 14 OK byte floppy disk drive and the monitor
could display 24 lines of 40 or 80-column text. The
computer was a closed-hardware architecture with no
expansion slots and the power supply was an external
unit. The housing integrated a 63-key keyboard that was
functionally a duplicate of The Apple lie keyboai/d .
printer called Scribe were released with the computer
introduction. Also announced but not available at the
introduction, was a flat-panel display that Apple
intended to introduce by the end of 1984.
Apple had updated the lie ROM software that
contained the Applesoft BASIC interpreter and various
routines. The computer used the new ProDOS operating
system that provided for hierarchical directory
structures. Most of the Apple II application programs
were capable of running on the lie computer. The basic
computer had a price of $1,295.
Apple introduced an enhanced Apple lie in
September 1986. Then they introduced a less expensive
Apple lie Plus that incorporated a faster 4 MHz version
of the 65C02 microprocessor, an internal 3.5-inch disk
drive and a built-in power supply in September 1988 . The
Apple lie Plus had a price of only $675 or $1,099 with a
Apple IIGS
The success of the Apple lie, the availability of
a compatible 16-bit microprocessor and a new Mega II
Apple IIGS. The "GS" stands for graphics and sound. The
Apple IIGS computet evolved from the 1982/83 Apple IIx
project. Principals in the engineering design were Dan
Hillman, Harvey Lehtman, Rob Moore and Wozniak. The GS
as Phoenix, Cortland and Rambo. Hillman and Jay Rickard
10/14 Paitm 1980's~ The IBM/Macintosh era
developed the Mega II as a cost reduction project, that
resulted in the integration of most Apple II functions
on a single chip. The new 16-bit computer incorporated
enhanced graphics, advanced sound capabilities, expanded
memory and an Apple II emulation mode . Apple introduced
the Apple IIGS in September 1986.
The computer used a Western Design Center W65C816
microprocessor and 256K bytes of RAM, expandable to B
megabytes. The storage system included support for both
3.5-inch 800K byte and 5.25-inch 140K byte floppy disk
drives. The terminal could display 24 lines of 40 or 80-
column text. The keyboard was a separate unit with 80
keys and a 14-key numeric keypad. The standard system
included a mouse. Apple also introduced an optional 20
megabyte hard disk designated 20SC for use with the
computer. A computer system with a monochrome monitor
and one 3.5-inch disk drive had a price of about 51,500.
Apple provided a new operating system called
ProDOS 16 for the 16-bit native mode and ProDOS 8 for
the Apple lie emulation mode. ROM software included; the
Applesoft BASIC interpreter, mouse based system
utilities and a desktop environment with similarities to
the Macintosh computer. QuickDraw II provided a set of
graphic routines. Most of the existing Apple II software
was compatible with the Apple IIGS. Apple released a new
more powerful and flexible 16-bit operating system
called GS/OS in September 1988.
The company released an enhanced Apple IIGS in
August 1989. The new computer had 256K bytes of ROM and
1 megabyte of RAM. The ROM software included a number of
William "Trip" Hawkins had developed a marketin
plan describing the requirements for the Lisa compute
by March 1980. Larry Tesler who had demonstrated th
advance Xerox Alto computer systems to Apple in Decembe
1979, joined the Lisa design team in July 1980 an
became the manager of software development. Rich Pag-
who was the chief hardware architect, had just complete
Apple Computer iu the 1980"s 10/15
a prototype of the Lisa computer incorporating a sample
Motorola 68000 microprocessor. The Lisa name now denoted
Local Integrated Software Architecture.
Once again, as in the Apple III product, Jobs was
affecting the design with numerous changes . This
resulted in the departure of Ken Rothmueller and the
appointment of Wayne Rosing as engineering manager. It
also resulted in Mike Scott and Markkula advising Jobs
in September that he would no longer be heading the Lisa
project. In anticipation of the public stock offering
and to placate Jobs they promoted him to chairman of the
board. As part of a new corporate reorganization, John
Couch became the general manager of the Lisa product
group.
Apple had integrated and extended the Xerox PARC
(Palo Alto Research Center! graphical concepts in both
the hardware and software. Bill Atkinson, Tesler and
others developed the operating system and bit-mapped
environment f-:-u the uss:. Ti":e Cv";:.:tr: wa =.: ie :=.: i :;ne::i :i
windows concept, icons, a standard user program
direct manipulation of screen objects by the mouse.
Apple had achieved a new "state of the art" for personal
computer software .
However A;; pie was having p i" o b 1 e in s with the Twiggy
floppy disk drive for Lisa. They decided to redesign the
drive and have it produced by the Alps Electric Company,
a Japanese manufacturer. Apple provided a preview of the
Lisa computer to the Manhattan East Coast media then
officially announced its introduction in January 198 3.
However the late delivery of disk drives from Alps
Electric delayed shipment of computers until May.
The computer used a Motorola MC68000
m i ■::■ coFi-C'ces 5: i with 1 megabyte :■ f F.?.M . The stcu age
system had two Twiggy 5. 25-inch 860K byte floppy disk
drives and a separate 5 megabyte Winchester-type hard
disk named ProFile. The computer housing enclosed the
12-inch monitor and two floppy disk drives. The keyboard
was a separate unit and included a numeric key pad. The
10/16 Part m
- The IBM/Macintosh era
Kin::l : w :-'an ;i :;e l ,
file and progracr
pac kage . Apple
roup developed the operating system,
kDirav, 1 g rap:".ic.=j , Desktop Manager f-:-r
ipulation and LisaGuide instruction
;ed software and the MC68000
microprocessor to generate the video display. The
company also developed a suite of seven application
programs called the Lisa Office System. LisaDraw
provided drawing capability for lines, boxes, circles
and other features with mouse control. LisaWrite was a
what-you-see-is-what-you-get word processor developed by
Tom Malloy, another Xerox PARC recruit. LisaCalc was a
sophisticated spreadsheet program. LisaGraph was a
Apple Computer in the 1980's 10/17
program with searching, sorting and reporting
capabilities. LisaProject was a PERT (Program Evaluation
and Review Technique) program with capabilities for
displaying Gantt and task charts. LisaTerminal was a
communications program with emulation capabilities for
the DEC VT52, DEC VT100 and Teletype ASR-33 terminals.
AppleNet software was also available for connecting
multiple Lisa installations.
A Lisa system with one megabyte of RAM, two floppy
disk drives, a ProFile hard disk and seven application
programs sold for 59,995. A C.Itoh dot-matrix printer
cost about $700 and a Qume letter quality printer was
about $2,100. The company targeted the Lisa computers as
office systems with pricing that excluded Apple's
traditional personal user. Unfortunately at the Lisa
computer. He stated that the Macintosh would cost $2,000
compared to $10,000 for the Lisa. This and the lack of
compatibility between the two computers would affect
future sales of the Lisa computer. Apple unbundled the
suite of software and reduced the Lisa price to $6, 995
in September.
Apple announced the Lisa 2 family of computers at
the annual shareholders meeting in January 1984. The
company changed the design and pricing to counteract
marketing concerns related to the new Macintosh
computer .
Apple released three models for what they called
the Apple 32 SuperMicro product line. Those three models
were the Lisa 2, Lisa 2/5 and Lisa 2/10. Each of the
models used the same Motorola MC68000 microprocessor as
the Lisa and had 512K bytes of user memory. The number
of floppy disk drives on each model changed from two
5. 25-inch Twiggy's to a single 3. 5-inch Sony drive as
used on the Macintosh. The Lisa 2 had no hard drive and
sold for $3,495. The Lisa 2/5 had an external 5-megabyte
ProFile hard drive and sold for $4,495. The Lisa 2/10
10/18 Paitm 1980's-TheroM/Maciutosh era
had an internal 10-megabyte hard drive and sold for
55, 495.
An operating system software package called
MacWorks was available that enabled all three models to
run Macintosh application programs. However one
potential problem was that the Macintosh pixel display
was square, whereas the Lisa pixel display was
rectangular. The Lisa Office application programs
required a model with a hard drive and a memory card to
extend the memory to one megabyte. Apple also announced
a new AppleBus for a small-scale local- are a network to
connect peripherals. It also facilitated the transfer of
files be:weer. the Li = a ar.cl MaciiiTcsti commute _" :;yi:^:'i.
Conclusion
Corp-i-rate America die; no: accept the Li.sa computer
not compatible with either IBM or the Macintosh and the
price was too high. Sales were significantly below
marketing forecasts in 1984. Then in January 1985 Apple
renamed the Lisa 2/10 computer Macintosh XL and reduced
the price to 53,995. The XL denoted extra-large or ex-
Lisa. Apple discontinued the other two Lisa models. This
however did not result in any significant sales increase
and Apple discontinued the computer in April 1985.
10.5 ... Macintoshes
Development and Release
Under Jef Raskin's direction, Brian Howard and
Burrell Smith had completed prototypes using the
Motorola M6809E microprocessor. Raskin had also hired
Guy "Bud" L. Tribble to develop the Macintosh software.
In September 1980 the board considered cancellation of
the project due to problems with the Apple III and Lisa
computers. After Jobs' separation from the Lisa product
development in September, he started looking at the low-
cost Macintosh project. Jobs now questioned Raskin's
selection in 1979 of the Motorola M680SE microprocessor
with its limited capabilities. Jobs supported a proposal
by Burrell Smith and Bud Tribble to change the
Apple Computer ill the 1980's 10/19
microprocessor to the Motorola MC68000 and had a new
prototype constructed by December. The new design had
many capabilities comparable to the Lisa, at
significantly lower cost. Jobs perceived the Macintosh
as being a suitable successor to the Apple II.
Jobs became the Macintosh manager and was given
authorization to change the Macintosh development from
"project" to "product" status. The time frame for the
new product development would be twelve months. In
January 1981 Jobs increased the staff by moving key
Apple II people to the Macintosh development group.
Principals in tj-.e hardware development •.■.'ere B.rrell
Smith and Rod Holt. In the software development the
principals were Bud Tribble the software manager, Bill
Atkinson, Andy Hertzfeld, Bruce Horn and Randy
Wigginton. Industrial designers Jerry Manock and Terry
Oyama designed the computer enclosure. Differences in
management and technical issues developed between Jobs
development group in 1981, and resigning from Apple
Computer in March 1982. Jobs had also supported the
removal of Mike Scott as president in March 1981 and was
now in a stronger position to control the destiny of the
Macintosh computer within the company. Apple established
a target date of early 1982 to ship the new Macintosh.
Jobs made a number of significant design decisions
during 1981 . The "footprint" of the new computer would
be no larger than a telephone directory to minimize the
space occupied by the computer on a desktop. After
various mockups of the case, Manock finalized the
enclosure design by early summer. The enclosure
integrated the monitor and floppy disk drive within the
case . The unit had a detached keyboard. There would be
no expansion slots; Apple decided that software would be
the means to expand the capabilities of the computer. A
set of software tools within ROM would facilitate
program development and provide a consistency in the
user interface. Apple had outside suppliers write most
of the application programs.
In the spring of 1981, Jobs visited Paul Allen and
Bill Gates at Microsoft to discuss the requirements for
10/20 Paitm 1980's-TheffiM/Maciutosh era
Microsoft to supply a spreadsheet, a chart program and a
BASIC interpreter for shipment with the Macintosh. At
this time Microsoft was busy developing software for the
new IBM E'er sons 1 Computer . However after visit i-g Apple
and seeing a presentation of the Macintosh, they reached
an agreement in January 1982 to provide the software
requested by Jobs. Microsoft adapted the spreadsheet
program from Multiplan, the charting program became
MacGraph and work on the adaptation of a BASIC
interpreter began.
The executive management approved production of
the Macintosh computer in December 1981 with shipment
date targeted for October 1982. However in early 1982
the introduction date of the Macintosh changed to May
1983. Jobs decided to assemble the Macintosh computer
using advanced robotic techniques in a highly automated
factory. They would also utilize a cost-effective
Japanese concept of "just-in-time" for delivery of
production parts .
The software manager, Bud Tritable left Apple in
19 82 . Robert L. Belleville replaced him and became
director of Macintosh engineering. Bill Atkinson, Steve
Capps, Andy Hertzfeld, Bruce Horn and Larry Kenyon
designed the operating system. Bill Atkinson had the
experience of being a principal in the development of
the Lisa operating system. Horn and Capps developed the
Finder program for file and program control in the
desktop envi i/onment . A di/awir.g p:0(jL" = iii named Mac ": : ketch
that became MacPaint, and an interface program called
Toolbox by Hertzfeld were also under development
internally. Apple assigned Donn Denman to develop a
BASIC programming language called MacBASIC. A potential
marketing problem for the Macintosh and Lisa computers
was developing. It was their lack of compatibility in
operating systems, programs and data files.
Jobs had arranged for Randy Wigginton to write a
word processing program for the Macintosh, when he
decided tc leave Ap;:-le . However Jsbs was determined to
have Wigginton write the word processing program. In
December 1981 Jobs offered Wigginton royalties up to $1
million if he developed the software on-time for the
Macintosh delivery date. Wigginton demonstrated his
Apple Computer iu the 1980's 10/21
:ei
= sing program ir
i early 1982.
y.&
had trouble
text. The set
:een display
i the original
256 by 2 56
resolution had change
pixels to 384 by 256 pixels and now for the new
requirements to 512 horizontal by 3 42 vertical pixels.
This allowed the lines to break on the screen at the
same place they break on the printer, a What-You-See-Is-
What-You-Get (WYSIWYG) system.
Jobs was also having problems with the Macintosh
name . Although Raskin had changed the spelling, Mcintosh
their trademark. Apple subsequently made a payment to
Mcintosh Laboratories to license the rights to use the
Macintosh name.
In January 1983, problems with the Twiggy floppy
disk drive resulted i- the computer introduction date
being moved to August . By the summer, Alps Electric was
still having problems, Apple therefore decided to use a
new 3.5-inch disk drive developed by Sony. The disk had
a greater capacity and a more protective plastic case.
However this resulted in the computer introduction date
being delayed again. Apple announced the introduction to
the public in a dramatic Orwellian commercial during the
Super Bowl football game in January 1984. The official
introduction was two days later on January 24th, at the
annual shareholder's meeting.
The computer used a Motorola MC68000
microprocessor with 128K bytes of RAM. The storage
system had one integral 3.5-inch 400K byte floppy disk
drive from Sony. The disk controller used a single
large-scale integrated chip called IWM (Integrated Woz
Machine) . It was a one-chip integration of the disk
controller functions as developed by Wozniak for the
Apple Disk II drive. The display was a 9-inch monochrome
monitor. The computer had a small 9.75 by 10.9 inch
footprint and was 13.5 inches high with no expansion
slots and a separate keyboard. The computer system
utilized a single-button mouse similar to the Lisa
10/22 Part III
- The IBM/Mac iiitosh e
Figure 10.4: Macintosh co-puter.
raph is courtesy of Apple Computer
The 64K of ROM contained;
- program and a set of roi
face Toolbox. The Toolbox
ing
the user interface. A QuickDraw graphics program
eloped by Bill Atkinson was also in ROM. Two
licat ion programs were available from Apple . The
st was MacPaint, also created by Atkinson and the
ond was the word processing program called MacWrite,
tten by Randy Wigginton. Microsoft had also adapted
spreadsheet program Multiplan and a Microsoft BASIC
Apple Computer in the 1980"s 10/23
for release in 1984 included; Pascal,
Assembler/ Debugger, Logo, MacDraw, Mac Project ,
Mac 7^ :m::".cl and The Word processing prog c am .
The price of the Macintosh was $2,495, an
ImageWriter printer $595 and a second 3.5-inch disk
drive $495. Prior to introduction Apple devised a unique
marketing strategy to increase initial sales. They
formed an Apple University Consortium (AUC) that offered
the Macintosh to students and faculty for a flat $1,000.
Mac i-to.=j:". to penetrate t'r.e siuca:ionsl marker. .
noted two limitations that impeded the utilization of
the Macintosh. One limitation was the storage system and
the other was memory. Apple released a second 3.5-inch
limitation was the lack of a hard drive. However the
significant limitation was the 128K bytes of user
graphics utilized a portion of the RAM memory. This
reduced the memory available for application programs
and files. It also resulted in a slowdown of program
execution. Users were saying that the computer was a
and a lack of application :
price to $1,995. Then Apple
TurboMac and released the "I
RAM memory in September.
1985, G<
between Microsoft Windows so
Lisa/Macintosh graphics. The agreement recognized that
Microsoft had used derivatives of the Apple graphics am
allowed their use in Microsoft Windows and othe:
the license for Microsoft BASIC (Applesoft BASIC) on thi
Apple II computer, Apple agreed to terminate thf
completion of MacBASIC that Donn Denman had beei
developing. Microsoft also agreed to upgrade the Won
Apple lo
wered tht
developme:
it of tht
jith 512K
bytes ot
Sculley
signed i
the sir
lilaritie:
and t
he Appl*
10/24 Paitm 1980's~ The IBM/Macintosh era
application program and delay the Excel spreadsheet fj
the IBM Personal Computer.
Macintosh Plus
Apple announced the Macintosh Plus with 01
megabyte of memory in January 1986. The computer had
improved disk: drive with greater capacity, cursor ke"
and a numeric key pad. The Macintosh Plus now includi
provision for the connection of a hard disk drive . Tl
computer had a price of $2,599. Apple also released tl
LaserWriter Plus printer that had a price of $6,798.
compute L s .
Macintosh SE
Apple introduced the Macintosh 5E (Syst
Expansion) that was an upgrade of the Macintosh Plus
the AppleWorld conference in March 1987. The SE mod
targeted the business market.
The computer had one expansion slot for a plug-
board, two internal disk drives and a heavy duty pow
supply with a cooling fan. One of the internal driv
could be a 20 MB hard disk. A rewritten ROM provided
speed impr
(it.
The Macintc
s -
SZ
had a
pric
52,
769.
Macintosh II
Appl
e al:
so :
introduced the f
Iacii
ltosh
II at
AppleWorld
cor.f
eret
ice in Los
Angeles
Cal:
.forni
Mai
rch 1987.
It i
*as
a second gen
erat
ior
of the
Maci
far
nily for
advan
ced
users. Mike
Dhue
y w;
is a princip
the desigr
1 of
tr.
e computer.
It
fe
atured
an
art
:hitectut
e, a
.re powerful
32-
-bit
micrt
■proce
bu:
Llt-in hard
d i =
:k storage,
a
sep
arate
colo:
raoi
lochrome
disp:
_ay
and network
capabil
ities
that
enable coi
inecti
or.
to the IBM w
orld
Thi
s re
prt
needed t
he IBM
announcement
of
the
PS/2
(Per
Sy:
stem/2) ■
eries
of
computers by
one
mon
Apple Computer ill the 1980"s 10/25
The computer used a Motorola MC68020
megabyte of RAM, expandable to 8 MB. The Mac II had
about four times the speed of a Macintosh SE . The unit
had an open NuBus architecture developed at MIT. The 13-
inch color or 12- inch monochrome monitor could display
640 by 400 pixels as compared to the 512 by 342 pixel
display on the previous Macintosh computers. The
compute L !:";( lucied cu.;;:cm sour.d chip? to digitize audio
input or output.
The i:-Li:-i-' cci-fiitfi v/i-h :\e :".eg aoyte of ~em:-iy had
a cost of S3, 898. A 40 MB hard disk drive cost $1, 599
51,547. A complete system had a total price of $7,044.
Apple released an implementation of the AT&T UNIX
operating system called A/UX, for the Macintosh in 1988.
Otiter Macintosh Developments
In March 1988, a software project called Pink was
started to develop a next-generation operating system.
The new system would incorporate advance features,
including object-based technology and preemptive
leader. Another development that became the Blue project
was started to improve the current operating system.
This became the System 7 operating system released in
1991 .
Apple introduced the Macintosh IIx in September
1988. It used the Motorola MC68030 microprocessor and
68882 math coprocessor. The computer had a price of
57,769. Early in 1989, Apple released the Macintosh
SE/30 that used the Motorola MC68030 microprocessor.
Then shortly after, Apple released the powerful modular
Macintosh Ilex. Apple introduced the Macintosh Ilci in
September 1989. It was a high-performance version of the
Mac IIx operating at 25 MHz. The computer had a price of
56,269.
10/26 Paitm 1980's-TheroM/Maciutosh era
Macintosh Portable
Apple introduced the Macintosh Portable in
September: 1989. The computer was available in two
models: a model with a single floppy-disk drive and a
model with both a floppy-disk drive and an internal 4
The computer used a Motorola CMOS 68000
microprocessor with 1 megabyte of RAM expandable to 1
megabytes. The unit included a built-in 3. 5- inch 1 . 4
megabyte floppy-disk drive and an active matrix liquid
crystal display with a screen resolution of 640 by 400
pixels.
The computer was 15.25 inches wide by 14.83 inches
'he keyboard had 63 keys and a unique
t for locating either a trackball pointing
an 18-key numeric keypad on the left or right
of the keyboard. The computer used lead acid
processor. This provided 8 to 10 hours of
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